USDA loans create homebuying opportunities in rural areas
The U.S. Department of Agriculture Rural Development is giving low and moderate income families living in rural areas an opportunity to make homeownership a reality.
The Single Family Housing Guaranteed Loan Program assists approved lenders in providing eligible households the opportunity to own homes in eligible rural areas. These USDA loans may involve no down payment (100% financing) and a 30-year fixed rate mortgage.
Household income must meet certain guidelines to be eligible for many USDA loans. Applicants must also agree to personally occupy the dwelling as their primary residence, among other required criteria. In addition, the home itself must be in an eligible rural area as defined by USDA.
“Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas,” explains the USDA’s website.
*USDA loans must meet local USDA approval guidelines as they vary by state. Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the U.S. Department of Housing and Urban Development, the U.S. Department of Veterans Affairs, the U.S. Department of Agriculture or any other government agency.
**Sample monthly Principal and Interest (P&I) payment of $1,411 is based on a purchase price of $300,000, down payment of 0.00%, 30 year USDA fixed rate mortgage and rate of 3.875%/4.397% APR (annual percentage rate). Advertised rates and APR effective as of 04/24/17 and are subject to change. Above scenario assumes a first lien position, 740 FICO score, 60 day rate lock, based on a single family home in Illinois and is subject to change without notice. Subject to underwriting guidelines and applicant’s credit profile. Sample payment does not include taxes, insurance or assessments. Private Mortgage Insurance (PMI) will be required for all FHA loans as well as conventional loans where the LTV is greater than 80%. Actual payment obligation will be greater. Not all applicants will be approved. Applicant’s interest rate will depend upon the specific characteristics of applicant’s loan transaction, credit profile and other criteria. Contact Guaranteed Rate for more information and up to date rates.